Korean buyer sets benchmark with Xstrata

A SOUTH Korean utility has agreed with Xstrata to set some 2009 thermal coal contracts at $US63 a tonne.

Angie Tomlinson

Reuters reported Korea Midland Power Co would buy some of its contract tonnage at $63/t, effectively setting the level for future price negotiations for other South Korean utilities.

The utility source told Reuters Korea Midland Power agreed to buy 375,000t at this price, out of a total contract tonnage of 500,000t.